Reader: State workers must accept the lesser of two evils on pension reform

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The California state pension program is at the tipping point, and it is clear that it is unsustainable without significant tax increases or reduction in services. We have reached the point where the pension pyramid has flipped and there are not enough California citizens in the state to pay for state worker pension liabilities.

There are only three solutions to resolve states pension liability problems. The first is to significantly increase taxes, but no private sector citizen feels it is their responsibility to pay for the pensions and health care of state workers. After all, we never voted to give state workers the lucrative benefits that they receive today. State workers have these lucrative pension and health care benefits because Sacramento politicians have for years sold their soul for votes.

The second solution is to reduce or eliminate benefits. Of course this option will only enrage state workers who feel that they are entitled to receive outrageous pensions and health care benefits. The private sector has for years funded their own retirement and paid for most, if not all, of their health care. State workers shouldn't be treated any differently than private sector employees.

The third solution is for state workers to fund their own pensions and health care benefits. This means that no tax dollars would be used to pay a state worker's pension or for their health care. All pension and health care benefits would come from a fund that is 100 percent contributed by the state worker (i.e. their salary). This option would eliminate the state's pension and health care liability, not increase taxes and state workers would receive the same retirement benefits as they feel they are entitled.

It is important to understand that fundamentally pension programs (public or private) are not sustainable unless 100 percent is funded by the employee or the retirement age is set to the overall average life expectancy in the United States (78.3 year old).

Pension programs are like a pyramid. In the beginning more people pay for a few retirees, but over time the pyramid tips upside down and the number of retirees exceeds the number of people paying into the pension program. In California, we have passed the tipping point and the pension program is virtually bankrupt.

The private sector has for years understood that pension programs funded by a corporation are not sustainable. This is why for years pension programs along with health care benefits have been reduced or eliminated at public and private corporations. Why can't public employees understand?

Many state workers will say that changing the pension is illegal or unethical because they are entitled to their pension. I say that it is the responsibility of the politicians to save the state of California from bankruptcy and raising taxes is not the way to fix the problem.

If we don't eliminate or pass on the responsibility to state workers, then California will go bankrupt. If this happens all pensions will disappear and state workers will be laid off en masse. For state workers it is a simple matter of accepting the lesser of the two evils.

We all want to save California and state worker pension and healthcare benefit reform is a significant part of the solution.

Contact the writer: Keith Russell is a Register reader who lives in San Clemente.

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